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Eli Lilly (LLY) Tops Q2 Earnings & Sales, Ups 2018 View

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Indianapolis, IN based Eli Lilly and Company (LLY - Free Report) , is a global healthcare company with core products in a number of primary-care pharmaceutical markets. Lilly generates revenues from its pharmaceutical product and animal health segments.

The company’s portfolio includes Zyprexa (schizophrenia and bipolar disorder), Humalog (diabetes), Evista (osteoporosis), Cymbalta (depression), Cialis (erectile dysfunction), Strattera (attention deficit hyperactivity disorder - ADHD), Erbitux (cancer) and Alimta (chemotherapy). Lilly also has a strong presence in the diabetes market. However, many of its key products are facing generic competition. The company also has some new products like Trulicity, Cyramza, Jardiance, Basaglar, Lartruvo and Taltz in its portfolio which are driving revenues.

Lilly’s earnings performance has been pretty impressive with earnings beating expectations in each of the last four quarters, bringing the average positive surprise to 8.20%.

Currently, Lilly has a Zacks Rank #2 (Buy), but that could definitely change following the company’s earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:

Earnings Beat: Lilly beat on second quarter earnings. The company reported EPS of $1.50 per share while our consensus called for EPS of $1.31.

Revenues Beat: Revenues also beat expectations. Lilly posted revenues of $6.36 billion, compared to our consensus estimate of $6.09 billion.

IPO for Animal Health: Lilly announced that its Animal Health segment will be separated into a new public company through an IPO. Lilly said it will own a stake of less than 20% in the new company and the IPO process is expected to be completed during the second half of 2018.

2018 EPS Outlook Upped: Lilly raised its previously issued outlook for adjusted earnings as well as sales.

Adjusted earnings per share are now expected in the range of $5.40 to $5.50, higher than $5.10 to $5.20 expected previously, to reflect the expected benefit from higher revenues and gross margins.

The revenue range was also slightly upped to $24.0 billion to $24.5 billion from $23.7 billion to $24.2 billion expected previously.

The Zacks Consensus Estimate for earnings and revenues is $5.16 per share and $23.87 billion, respectively.

Stock Price Impact: Shares shot up more than 4% in pre-market trading.

 

Eli Lilly and Company Price and Consensus

 

Eli Lilly and Company Price and Consensus | Eli Lilly and Company Quote

 

Check back later for our full write up on this Lilly earnings report later!

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